Tuesday, April 26, 2011

No Silver Lining in Mr. Buffett's Pocket?

I got an e-mail from someone accusing me of bashing Warren Buffett's views and how I should think before I speak. I first need to say that I have great respect for everyone who invests and he has been one of them - but at the same time I feel each one of us should use our own brain, a unique gift from God. You shouldn't blindly follow me either, because that isn't what being a Happionaire investor is about. It is about encouraging you to think for yourself.

Now his views on Gold and Silver are not something which have worked well with me - specially since I feel as Indians, we can learn a lot from our ancient culture and civilization. As a Hindu, it has been a custom for us to buy gold on auspicious occasions - it has been a custom to have silver coins with the images of Goddess Laxmi during Puja.

While people might talk about all sorts of derivatives and computers managing money, I still trust out traditional ways. Modernity mixed with traditions is what I see a future India as. Our ancient civilization has immense power and knowledge and every time we look at it we will see that it has so many wonderful lessons for investors. The Geeta for instance is a million times better for a potential investor to learn from than any other book. Now we all know what has happened to Gold prices - and let me tell you there is still a lot of upside left.

There was a time when silver used to be one tenth the price of what it is today, or even less. In those days if you recall Berkshire Hathway had taken positions of silver - very very very large positions. Today had they held on to it, a little over ten years, it would have been easily worth several billion dollars. In fact it would have ensured that it was the best investments of the decade for them. ( http://seekingalpha.com/instablog/399221-graham-and-dodd-investor/4920-warren-buffett-s-mistake-with-silver )

While today Silver at over Rs. 70,000 has rewarded investors very well, I feel they can gradually start moving to other assets. The run has been beautiful and anyone who held one would be rewarded well. But I feel now gradually it is time to start moving into gold and also the company we had shared earlier infected by pests. The price has been rising steadily - but that is just the beginning of what to expect. Same with gold, lots of potential ahead.

People around have been talking a lot about new regulations and laws to curb correction, but people fail to realize that corruption is reducing over time in our daily lives. It is just that these days we have 24 x 7 news channels. Look at your daily life twenty years ago - right from getting a phone connection to a passport to getting your light meter fixed you had to bribe someone. On the airport you had to bribe officials and customs - today things are changing and corruption is reducing.

Look at the positives and you will be much happier. At the end of the day - people who succeed aren't cynics, but people who look at the positive and grab opportunities. Ten years ago silver would have created a beautiful silver lining in your pocket. Now it is time to get your pockets lined with some Gold and the pest-stricken company. Why I am saying to look at this company carefully is because it is once again one of those cases, like when in 2008 I was telling you to look at the stock markets or when in Cash The Crash I shared my experiences about Indian Hotels, or a few years ago when I was telling you about Gold or silver. I know almost all of you have read the report, but still a few are hesitant to take action - just out of fear. In life we achieve only when we conquer our fears - we might be wrong or right, but the beauty is when we look back we will not regret anything.

Start a new hobby, exercise, speak to random people around you, make new friends, laugh and share ideas. It is beautiful.

Have a wonderful day ahead and keep having fun!

Yogesh Chabria

The Story of Why Gold Will Rise More


gagandeep said...

Superb post! You are right Sir, silver has run up time to move to the pest ridden company! ;)

Sir, please share what Chameleon is doing?

rajat said...

Yogesh ji,

Local jeweller is quoting Rs. 23,000 for going coin, please share if this is the right rate.


Raman said...


Can we purchase this report now? What's the way to go and also whether this is a good time to purchase the report? It may already shoot up, I guess?

Rahul Malik said...

Dear Sir, I see you are obsessed with Gold :) However, I firmly believe Gold will die a long slow death - sooner or later.

Nadia said...

I think Yogesh has always been obsessed with anything that gives good returns. During Crash - it was Crash - now it is gold. I'm glad he has so much passion.

Very inspiring.

Satish Patel said...

It will be of great value if you can share your latest views (couple of lines) on the educational reports shared so far (excluding the last one). The updated views itself can be in the form of another report that is purchasable.

It could help us learn, how views should or should not change based on events happening around the company/economy.

It could give us an indication, if the companies can still be considered for future investments or look for other opportunities.

I hope you consider the request.

Deb said...

I wrote a comment about Buffet in your last post. I think the person who has written an email to you is very emotional in nature. He is a Blind follower and seldom uses his God gifted Brain.I think he has missed the GOLD run.

Should we exit Silver completely or partially?